EX-12.1 14 d90344ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12.1 AFFILIATED COMPUTER SERVICES, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
1997 1998 1999 2000 2001 ---------- ---------- ---------- ---------- ---------- Income before income taxes $ 83,570 $ 94,092 $ 145,537 $ 195,270 $ 221,060 Less: Minority interest -- 882 360 (84) (1,230) Less: Capitalized interest (300) (33) (225) -- -- Interest and related charges on debt (a) 7,121 12,059 17,594 23,979 23,742 Portions of rentals representative of interest (b) 21,497 23,271 27,383 30,349 26,591 ---------- ---------- ---------- ---------- ---------- Total fixed charges included in net income 28,618 35,330 44,977 54,328 50,333 Earnings available for fixed charges 111,888 130,271 190,649 249,514 270,163 ========== ========== ========== ========== ========== Fixed charges: Fixed charges included in net income 28,618 35,330 44,977 54,328 50,333 Interest capitalized during the period 300 33 225 -- -- ---------- ---------- ---------- ---------- ---------- Total fixed charges 28,918 35,363 45,202 54,328 50,333 ========== ========== ========== ========== ========== Ratio of earnings to fixed charges 3.9 3.7(c) 4.2 4.6(c) 5.4 ========== ========== ========== ========== ==========
(a) Interest and related charges on debt consists of interest expense, capitalized interest and amortization of debt issuance costs. (b) Portion of rentals representative of interest is estimated to be one-third of rental expense. (c) For the purpose of calculating the ratio of earnings to fixed charges, earnings are defined as earnings before income taxes and extraordinary items plus fixed charges. Fixed charges consist of interest expense, amortization of debt issue costs and a portion of rental expense representative of interest. For fiscal year 1998, if the merger costs of $13.0 million ($8.9 million, net of tax) referred to in Note 1 were excluded, the ratio of earnings to fixed charges would have been 4.0. For fiscal year 2000, if the net non-operating gains of $13.9 million ($1.1 million, net of tax) referred to in Note 1 and the $3.0 million of accelerated expenses in connection with the consolidation of certain business process outsourcing operations were excluded, the ratio of earnings to fixed charges would have been 4.4.